Aerospace

Aerospace: An opportunity to fill supply chain gaps in a growing market

The long-term forecast for commercial OEM aircraft is about 39,000 deliveries over the next 20 years, at a value of approximately $5.9 trillion. Moody's Dec 2017 industry report was also upbeat about the 2018 outlook for the sector and predicted that "strong aircraft order backlog" will fuel 10 percent growth in the aerospace industry's delivery ramp-up. This growth would boost profits and cash flow for companies. However, the report also warns of potential supply chain risks in the year ahead. The US aerospace industry is the largest in the world, with a skilled and educated workforce, extensive distribution systems, diverse offerings, and strong support at the local and national level for policy and promotion. However, there are some supply chain vulnerablities in this growing market that need to be addressed.

Supply chain vulnerabilities

Massive orders for Airbus, Boeing and Embraer commercial aircraft have left supply chains at a choking point, with a significant risk of manufacturing or supplier problems delaying aircraft delivery. Both Airbus and Boeing announced that they exceeded commercial aircraft net orders and operational performance targets. As production ramps up, manufacturers need to be confident that their suppliers can keep up. As a result, suppliers need to develop methods of managing and producing the subassemblies, components and major systems for the aircraft. The ability to shorten the manufacturing and design build time is a critical challenge

In the business aviation sector, new orders are creating challenges at both ends of the corporate jets market. Gulfstream is the market leader right now. However, their large-end Gulfstream G650 is sold out for 4 years with no relief in sight. At the lower end of the market, there are too many completed aircraft without a buyer/owner to take delivery. Additionally, while pre-owned inventory shows a positive trend, residual values remain low

In the military sector (DOD and foreign equivalents), major manufacturers need to find a way to reduce the overall cost and speed up deliveries to the Air Force. Here, supplier quality and rate and cost issues are impacting the global supply chain. Acquisition reform under the Trump administration is likely to put pressure on contractors to accept more of the risk, with ‘cost plus’ contracts on the decline

Our experience and expertise

Maine Pointe’s team consists of seasoned experts with experience across the entire aerospace supply chain. We have worked on numerous successful projects for major manufacturers, including completing and obtaining customer acceptance and FAA airworthiness certification for over 50 aircraft for a major US aircraft manufacturer.

Who we are

We are a global implementation-focused professional services firm trusted by many chief executives and private equity firms to drive compelling economic returns for their companies. We achieve this by delivering accelerated, sustainable improvements in both EBITDA and cash across their procurement, logistics and operations to enable growth.

A results-driven approach

Total Value Optimization™(TVO) is achieved when an organization is dynamically able to anticipate and meet demand through the synchronization of its buy-make-move-fulfill supply chain to deliver the greatest value to customers and investors at the lowest cost to business. Calculate the value potential for your business today and take our 10-minute assessment.

How we do it

Our clients are continuously focusing on improving EBITDA, cash and growth for existing and new markets. Our hands-on implementation experts work with executives and their teams to rapidly move up the Total Value Optimization (TVO) Maturity Curve™ and enable growth by:

Identifying and quantifying the real opportunity

Identifying current constraints and barriers

Creating a robust and measurable business case with a clear ROI

Developing a pragmatic roadmap for accelerated results

Working closely with clients to implement and track measurable improvements

Global Reach

Maine Pointe has delivered $Billions of benefits across 30 countries worldwide.> Read More

Our Unique Guarantee

Our engagements deliver between a 3.5:1-12:1 ROI. We provide a unique 100% guarantee of engagement fees based on annualized savings.> Read More

White Paper: Supply Chain Best Practices

This white paper from the Global Supply Chain Institute, University of Tennessee, sponsored by Maine Pointe, concludes that supply chain complexities can be successfully overcome through better end-to-end-collaboration andidentifies this as a largely untapped area for competitive advantage.> Read More

Industry Leads

Aerospace Perspectives

Dave Kleine, EVP Aerospace, and Alfred Baumbusch, EVP Operations, outline how cross-functional supply chain collaboration is the key to unlocking trillions of dollars of revenue tied up in production. > Read More

US Airforce Paper

Our hands-on implementation experts work with senior military personnel and their teams to rapdily move up the Total Value Optimization (TVO) Pyramid™. > Read More

Defense Success Story

Improved productivity by 31% for a provider of high- grade military battery technology. > Read More

Using strategic procurement to drive competitiveness and penetrate new markets

Practical Insights

Is your supply chain and manufacturing operation set up to capitalize on growth in 2018?> Read more

Our Global Affiliations

Maine Pointe is a member of the Global Supply Chain Institute (GSCI) at the University of Tennessee. The GSCI is a knowledge hub that helps companies deliver maximum value through supply chain management. It is industry's connection to the researchers and students with the Haslam College of Business's internationally recognized and top-ranked supply chain program.> Learn More